Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Nationwide fined for security breach

15 February 2007

Nationwide Building Society has been fined £980,000 for a lapse in security by the Financial Services Authority (FSA) after a laptop containing potentially sensitive customer information was stolen from an employee's home, but not investigated until three weeks later.

The hefty fine penalised the building society for failing to implement adequate security procedures or to begin an investigation into the incident sooner.

The breach was particularly serious because 11 million customers entrust Nationwide with their personal information, the FSA's director of enforcement Margaret Cole said.

"Nationwide's customers were entitled to rely upon it to take reasonable steps to make sure their personal information was secure," she stressed, suggesting that the building society's failure to take swifter action could undermine consumer confidence.

Nationwide's chief executive Philip Williamson hurried to "emphasise that there has been no loss of money from our customers' accounts as a result of this incident".

Although the FSA said that it viewed the swift and decisive fine as a warning to other financial services providers, some commentators will be concerned that the failings of internal security systems are only exposed when an investigation of this kind takes place.